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New Insights on Covered Call Writing

$31.96
Authors: Richard Lehman and Lawrence G. McMillan

Investors are desperate for sensible ways to bridge the gap between the consistency of fixed-return investments and the upside potential of equities. Now, Lehman and McMillan present a powerful approach that's been used by big traders for decades, but has remained largely unknown or misunderstood by typical investors. New Insights is a complete guide to the increased control and lowered risk covered call writing provides. Master this powerful strategy for success in today's - and tomorrow's - markets.

Enhance your returns and lower your risk

How often have you wished for an investment strategy that bridged the gap between the stock market and fixed-yield investments? Covered call writing is that strategy. It offers much of the upside potential of equities with less volatility and provides investors the flexibility to tailor the risk-reward trade-off to their individual needs. Returns of 10 to 15 percent per year in conservative accounts--and as much as 20 or 40 percent per year in more aggressive accounts--are possible. But there are also caveats that investors must understand before implementing this strategy.

In this pioneering, easy-to-understand book, leading options experts Rick Lehman and Larry McMillan give a complete guide to covered call writing and the increased control and lowered risk it affords. They detail the basics and beyond, from the mechanics of implementation to developing strategies that are best suited to your investment goals.

Covered call writing as it can be practiced by any stockowner does not require huge minimums, margin accounts, or advanced theoretical analysis. It can be implemented in a retirement account as well as in investment or speculative accounts. However, it is a strategy that to date, at least, has been practiced by only a devoted few. New Insights on Covered Call Writing shows how to use this powerful and accessible investment technique--giving you the edge to enhance your returns and lower your risk.

Product Details

Hardcover: 240 pages
Publisher: Bloomberg Press

Reviews

"This book makes a great case for basic reading and writing--reading stock charts and writing covered calls."
John Murphy - President, Murphy Morris Money Management

"This was a definite eye-opener, and one of the soundest approaches to stock investing I’ve seen. It makes you wonder what else Wall Street has been keeping from us."
Brian R. Workman - Senior Vice President, Citi Cards, Citigroup

"In a low-return, high-volatility environment, these strategies can boost returns and lower risk. There is no such thing as a free lunch, but in this case all the lunch costs is a little initiative."
Stephen M. Savage - Managing Director, Litman/Gregory Analytics

"This book has the most complete and comprehensive coverage of covered call investing that I have seen. Most books discuss covered calls as just one of many option techniques. This book goes the extra mile. It discusses the theoretical aspects of covered calls and also provides the practical tools any investor would need to effectively implement a covered call trading strategy."
Ernie Zerenner - President, Power Financial Group, Inc.

About Richard Lehman

Richard Lehman has more than twenty-five years of experience applying his expertise in options strategies. He has held executive positions at E.F. Hutton, Thomson McKinnon Securities, First Saxonia Securities, and at the New York Stock Exchange.

Chapter Titles

  • 1. Option Basic
  • 2. Just Beyond the Basics
  • 3. Covered Writing Mechanics
  • 4. Turning A Position Into A Strategy
  • 5. The Benefits of Covered Writing
  • 6. Intangible Benefits
  • 7. Implementation
  • 8. Advanced Implementations
  • 9. Tools For Covered Writers
List Price: $39.95
Price: $31.96

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
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Testimonials*:  Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. You should not necessarily expect the same or similar results.

Performance Results: Past performance results for advisory services and educational products are shown for illustration and example only, and are hypothetical.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.